The retrenchment of 1,450 jobs at Swaziland’s largest
textile manufacturer Tex Ray draws attention to the continuing exploitation of
workers in the kingdom.
Tex Ray is one of a number of textile companies from Taiwan which
set up factories in Swaziland to exploit cheap labour,
government subsidies, tax breaks and the kingdom’s status under the Africa
Growth Opportunities Act (AGOA), which allowed manufactured goods to be
exported to the United States tariff free.
But, as Swaziland is set to lose its AGOA status on 1
January 2015 because of its poor record on worker rights, in particular
protecting freedom of association and the right to organize, Tex Ray is to massively
down-size and other Taiwanese-owned textile factories in the kingdom are
expected to follow.
Tex Ray told
local media in Swaziland it would retrench its workforce because it would
make a financial loss when AGOA benefits were removed. Only 250 workers will
remain at the company.
In a
letter, to the Swaziland Manufacturing and Allied Workers Union (SMAWU) and
Labour Commissioner Khabonina Dlamini, factory manager Lisa Chang said, ‘The
company exports 100 per cent of its products to the United States of America
market and due to the country’s exclusion [from AGOA], we have been unable to
secure any further orders from our clients.’
Human Resource Manager Jackie
Xu said, ‘All clothing produced within the Tex Ray Swaziland Factory was
destined for the United States. So when there were no orders coming in and
workers were idle, we decided to send them home while we figured out on what
steps to take next.’
The Taiwanese companies have caused concern among labour
union leaders and non-government organisations for years because of the way
they exploit their workers.
In July 2014 a survey of the
Swaziland textile industry undertaken by the Trades Union Congress of
Swaziland (TUCOSWA) revealed workers in the textile sector were subjected to
harsh and sometimes abusive conditions, many of the kingdom’s labour laws were
routinely violated by employers, and union activists were targeted by employers
for punishment.
More than 90 percent of workers surveyed reported being
punished by management for making errors, not meeting quotas or missing shifts.
More than 70 percent of survey respondents reported witnessing verbal and
physical abuse in their workplace by supervisors.
Commenting on
the survey, the American labour federation AFL-CIO said, ‘Some workers
reported that supervisors slap or hit workers with impunity. In one example, a
worker knocked to the ground by a line manager was suspended during an
investigation of the incident while the line manager continued in her job.
‘Women reported instances of sexual harassment, as well.
Several workers said they or other contract (temporary) workers were offered a
permanent job in exchange for sex.’
Mistreatment
of workers in the textile industry in Swaziland has been known for many
years and workers have staged strikes and other protests to draw attention to
the situation.
In its report
on human rights in Swaziland in 2013, the US State Department said wage
arrears, particularly in the garment industry, were a problem. It said, ‘workers
complained that wages were low and that procedures for getting sick leave
approved were cumbersome in some factories. The minimum monthly wage for a skilled
employee in the industry - including sewing machinists and quality checkers - was
emalangeni 1,128 (US$113). Minimum wage laws did not apply to the informal
sector, where many workers were employed.
‘The garment sector also has a standard 48-hour
workweek, but workers alleged that working overtime was compulsory because they
had to meet unattainable daily and monthly production quotas.’
A damning
report on Swaziland’s
textile industry called Footloose Investors,
Investing in the Garment Industry in Africa, was published in 2007 by SOMO – Centre for Research on Multinational
Corporations, in Amsterdam, The Netherlands.
It said the
Swaziland Government gave companies a large number of incentives such as tax
exemptions and duty free importation of raw materials. The Government also
allowed companies to take all profits and dividends outside of Swaziland, which
in effect meant that there was little or no investment within Swaziland from
the companies.
With a
change of world trading conditions, Swaziland became less attractive to foreign
companies. In order to maintain profits the companies began to lobby the
Government for changes in the law. The companies especially wanted laws and
regulations regarding labour loosened.
SOMO
concluded, ‘It seems that the public spending on building shells and
infrastructure aimed at attracting foreign investment in the garment industry
has not brought about much economic benefit so far.’
The report
stated, ‘Companies have been asking for certain “incentives” in exchange for
their continued production in the country, implying that the country owes them
something for their presence.
‘One of the
companies in Swaziland, for example, Tex Ray, announced its willingness to set
up a textile mill but asked in return for less stringent labour laws and laws
on the environment, and for the prices of electricity and water to be halved.
They also felt that government should subsidise the wages.’
In September 2014 hundreds
of workers at Tex Ray were affected by poisonous chemical fumes at the factory
in Matsapha. Many needed hospital treatment and the factory was closed for
several days.
The Swazi
Observer newspaper reported
allegations from workers that retrenchment was a way for the company to avoid
liability. The newspaper reported that other textile factories,
including Kartat Investments, Kasumi and Union Industrial Washing, continued
to operate.
The 1,450 workers retrenched at Tex Ray will
receive terminal benefits ranging between E915 (US$90) and E18,000
(US$1,800).
Amalgamated Trade Unions of Swaziland (ATUSWA) Secretary
General Wonder Mkhonza told
local media, ‘The benefits being calculated for them are too little to even
survive for two months. For those of us close to the situation on the ground
it’s really painful. Honestly, those who are far removed from the situation are
happy because they don’t have to witness the misery that has become
characteristic at the textile companies.’
The Swazi
Observer reported there were at
least 17,289 people employed by the textile companies in Swaziland and all
these could lose their jobs should the kingdom lose its AGOA eligibility.
Amongst these companies, Tex Ray has one of the
highest number of employees at 6,000, Zheng Yong in Nhlangano has 2,000, FTM
Garments employs 1,480, Leo Garments has 800, the Great Spring has 600 and HO’s
Enterprise has 750.
See also
EXPLOITATION BY TAIWAN TEXTILES
MINISTER RAIDS TEXTILE FACTORY
SWAZI TEXTILE PAY STRIKE ILLEGAL
SWAZI GOVT AIDS TAIWAN EXPLOITATION
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